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J.D. Power Study: Traditional Banks Outperformed Fintechs In Consumer Lending Customer Satisfaction
WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after J.D. Power released the results of its 2021 U.S. Consumer Lending Satisfaction Study, which found even as the consumer lending landscape shifted dramatically over the past year, traditional banks outperformed fintech lenders on customer satisfaction:
“Throughout the COVID-19 pandemic, America’s leading banks delivered relief for families, small businesses, and the broader economy. When nearly every business had closed their physical locations, bankers did whatever they needed to do to continue providing services and safely re-open. Early on, tellers and loan officers risked their own health to provide financial solutions for their customers in-person, even as their own cities and towns were largely shut down. This survey underscores customers’ recognition of and appreciation for bankers, who received high marks for prioritizing customers, communicating clearly, and offering easy-to-use digital tools. The past 15 months have proven traditional banks are vital resources for the communities they serve and will continue to meet the evolving needs of the American people.”
CBA members American Express, Discover, and Citi ranked highest among personal loan lenders included in the study. The study follows J.D. Power’s 2021 U.S. Retail Banking Satisfaction Study, released in April 2021, which found banks’ efforts to strengthen communication, offer digital products and services and support their communities led to a surge in customer satisfaction.
Key findings from the study:
- Customer satisfaction was flat for the Personal Loan industry: “Fintech lenders saw their overall satisfaction scores decline 5 points (on a 1,000-point scale) this year, due to slower application approval times and tighter credit criteria. By contrast, traditional bank and credit card-branded lenders see overall customer satisfaction scores rise 4 points this year.”
- Trust in lending partners is up year over year: “While the pandemic forced lenders to change how they do business overall industry trust improves. Traditional lenders significantly outperformed fintechs in putting the customer first; providing guidance; is aligned with my social views; provides honest communication; treats people fairly; and provides more reliable technology.”
- Easy-to-use websites and mobile apps gain even more importance: “Lenders were forced to rely on digital means during the pandemic, especially traditional lenders. Fintech customers were more likely to use their personal computer to engage, while traditional lenders relied on mobile applications. No matter how they were accessed, secure and easy to use sites were high on consumer wants, as they continue to compare site use against all of their other web interactions.”
For more information about the J.D. Power U.S. Consumer Lending Satisfaction Study, click HERE.
About the Consumer Bankers Association:
The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.